2020 Deloitte holiday retail survey
Reimagining traditions
October 2020

INTRODUCTION

In 35 years of holiday reports, we’ve seen it all
Deloitte’s holiday survey turns 35 this year! To honor the long tradition, we’ve added new elements to our report, including
a nostalgic podcast featuring retail leaders breaking down some of the industry’s biggest trends, and supplemental datafrom Deloitte’s Insight IQ. Also, please view our economic forecast discussing the emergence of a K-shaped recovery andcheck back later in the season to view our pre-Thanksgiving report.
Since Deloitte began tracking the holiday shopping period in 1985, we have watched an incredible transformation takeplace as retailers have adapted to the changing needs of consumers. Throughout the years, the report has followed theholiday shopping season as it has evolved from an in-store cultural shopping experience to a more task-driven ecommerce event. We have monitored how consumer behavior has adjusted to recessions as well as periods of innovationand growth. As COVID-19 continues to be a disrupting force this year, it is comforting to look back at previous holidays andsee that some things remain constant. Price, product, and convenience are still top considerations for consumers, and sois the desire to make the season special for friends, family, and pets, no matter the circumstances.
In Deloitte’s Global State of the Consumer Tracker, we have seen anxieties running high for several months with 60% of US
shoppers concerned for the health of their families. Financial concerns persist; as of mid-September, 34% of shoppers areworried about making upcoming payments, up from 26% a month prior.1 Our holiday findings have identified how thoseanxieties are reshaping consumers’ approaches to the shopping season, especially around category spend, timing, andshopping formats.
For retailers, it will be a season of uncertainty, but as we have seen in previous eras, disruption often leads to innovationand opportunity. In 35 years of analysis, perhaps the most resounding takeaway is that both consumers and the retailindustry are resilient.
1 Deloitte, Deloitte State of the Consumer Tracker, September 17, 2020.

Rodney Sides

Vice chairman & US leader
Retail & Distribution
Deloitte LLP
rsides@deloitte.com

Stephen Rogers

Executive director
Consumer Industry Center
Deloitte Services LP
stephenrogers@deloitte.com

Bryan Furman

Retail sector specialist
Retail & Distribution
Deloitte Services LPbfurman@deloitte.com

Lupine Skelly

Research leader
Retail & Distribution
Consumer Industry Center
Deloitte Services LP
lskelly@deloitte.com

Copyright © 2020 Deloitte Development LLC. All rights reserved. |2

COVID isn’t cancelingthe holidays …

… But consumers are trimming in four key areas:

They’re getting creative withhow they celebrate this year—
redirecting their time andspend toward home andkeeping things festive.

Copyright © 2020 Deloitte Development LLC. All rights reserved. |4

Keyfindings

Better not
pout

Deck the halls

Spending: COVID-19–related anxiety translates to cautious spend• Shoppers expect to spend $1,387 per household during the holiday season
this year, down -7% YoY• 38% of shoppers plan to spend less YoY because of concerns aroundeconomic instability
Travel and experiences: Budgets once reserved for trips are now goingtoward celebrating at home
• Consumers expect to shift spend out of travel (-34% YoY)
• Non-gift items such as home furnishings and seasonal décor are on the rise(+12% YoY)

Home for theholidays

In-store shopping: Aiming to avoid crowds, consumers seek out contactlesssolutions• Nearly 51% of holiday shoppers feel anxious about shopping in-store• Contactless shopping experiences are in demand with 73% planning to haveitems delivered vs. 62% in 2019; preference for curbside pickup more thandoubled YoY• Online retailers (62%) and mass merchants (50%) are the top holiday
destinations as shoppers pull back from browsing formats

Browsing…
bah humbug

Timing: New shopping behavior seems to favor efficiency• The average shopping window is expected to be 1.5 weeks shorter this year
• Though the industry was expecting holiday consumers to shop earlier,consumers plan to start at similar times YoY
Copyright © 2020 Deloitte Development LLC. All rights reserved. |5

COVID-19–related anxiety
results in cautious spend

The majority of consumers are in similar or better financial situations
than last year; however, nearly one in three say that their household’s
financial situation is worse
Shopper sentiment on household finances(% holiday shoppers)

50%

41%

40%

43%

39%
28%
29%

30%
20%

20%

10%
0%
2009

2010

2011

2012

2013

A lot/somewhat better

2014
The same

2015

2016

2017

2018

2019

2020

A lot/somewhat worse

Question: “Thinking about your household's current financial situation, would you say it is ...”
Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |7

Throughout the pandemic, the lower-income group has been the mostconcerned about making upcoming payments
Lower income(Less than $50k)

Middle income($50k–99k)Higher income($100k or more)

Plan to spend less on
holiday shopping
compared to last year

42%

36%

35%

Household finances
are a lot/somewhat
worse than last year

36%

28%

22%

Questions: “How will your total holiday spending compare with last year's holiday season?”; “Thinking about your household’s current financial situation, would you say it is ...”; and “What are the reasons why you
plan to spend less this year on the holidays?”
Copyright © 2020 Deloitte Development LLC. All rights reserved. |Notes: Sample size (N)=4,012. All dollar amounts are in US dollars.

8

Although many are feeling the economic impacts of COVID-19, lowerincome families have been hit harder
Concerned about not being able to make upcoming payments (e.g., rent, mortgage, auto, credit card) – By income(% agree)
50%

40%

40%

30%

27%
20%

20%

10%

0%

Lower income (Under $50k)

Middle income ($50k-$99k)

Higher income ($100k+)

Question: “To what extent do you agree or disagree with the following statements?: I’m concerned I will not be able to make upcoming payments (e.g., rent, mortgage, auto, credit card).”Notes: Sample size (N)=~1,000 per week. All dollar amounts are in US dollars.

Copyright © 2020 Deloitte Development LLC. All rights reserved. |9Thirty-eight percent plan to spend less this holiday season, a level notseen since the financial crisis
Shopper spending intentions

Top reasons for spending less(% holiday shoppers)(among the 38% who plan to spend LESS this year)

100%

80%

78%

60%

62%

40%

38%
22%

20%

50%

concerned about economy ingeneral/economic instability

40%

saving more instead of spending

0%
2000

2002

2004

2006

2008

2010

Spend more/same

2012

2014

2016

2018

2020

Spend less

Question: “To what extent do you agree or disagree with the following statements?: I’m concerned I will not be able to make upcoming payments (e.g., rent, mortgage, auto, credit card).”Notes: Sample size (N)=~1,000 per week. All dollar amounts are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |10As consumers cut back on travel and experiences, non-gift purchases
are likely to benefit
34% decline in travel spend is set
to give retailers a boost this year,
up to 66% of total holiday spend$1,387 Average expected spend per household during year-end holiday season-7% vs.LY

Holiday shopping spend
Retail categories($922)

Nongift clothing$435

Nongift purchases+12% YoY

Home/holiday furnishings$119

Other (misc.)

$141

$347

$487

Gifts
$175

Gift cards/gift certificate

Gifts and gift cards-5% YoY

$140
$205

$205

Entertaining at
home

0% YoY$260$260

Entertaining at home
Socializing away from home

Socializing awayfrom home (travel)-34% YoY

Question: “How much do you expect you will spend during the upcoming year-end holiday season on each of the following items?”
Notes: Sample size (N)=4,012. LY denotes “last year (2019).” All dollar values are in US dollar.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |11

During the pandemic, the lowest-income cohort exhibited the largest
share-shift away from travel toward telecom and media and retailYoY change in spend across sectors and income groups
September 2019 to August 2020 vs. September 2018 to August 2019
Telecom and media

3%

-1%

Retail1%
0%

Food and beverage-1%

Automotive
Health and wellness
Travel
-50%

-19%
-38%
-40%

6%
5%

6%
6%
4%

1%

0%

-12%
-12%
-15%

-36%
-34%

-38%

-30%
-31%
-32%

-40%
Less than $20K

-30%

-20%

-10%

$21-60K$61-100K$101+K

Sources: Affinity Spend data; Deloitte analysis.
Note: September 2019 to August 2020 vs. September 2018 to August 2019sectors reflect a representative set of organizations.

0%

10%

Copyright © 2020 Deloitte Development LLC. All rights reserved. |12

In retail categories, clothing and accessories are likely to attract thelargest portion of holiday spend$922

Average amount to be spent on retail categories during the holiday season
Share of total holiday
spend at retail

Average category spend^% of shoppers purchasing

21%

$253

74%

Gift cards and other

19%

$242

72%

Food and beverage

14%

$200

65%

Electronics and accessories

13%

$195

60%

Toys and hobbies

13%

$163

74%

8%

$158

49%

Health and wellness

7%

$114

55%

Pet

5%

$90

50%

Category

Clothing and accessories(clothing, shoes, jewelry, etc.)(gift cards, data plans, money, subscription products, etc.)(e.g., food, meal preparation kits, and liquor)(computers, tablets, wearables, etc.)(books, board games, dolls, movies, handcraft items, etc.)

Home and kitchen(home improvement, home appliances and electronics,
furniture, etc.)(e.g., cosmetics, personal care products, sporting goods)(e.g., pet food and treats, pet décor and supplies)

Notes: ^ Average spend includes only respondents who will purchase the above-mentioned category or item. Sample size (N)=4,012. All dollar amounts are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |13

While all holiday shoppers were impacted by COVID-19, four distinct
types are emerging in the market
Francesca,
the festive shopper27%

of holiday
shoppers
Average spend:$1,652Chloe,
the conscious shopper

18%

24%

of holiday
shoppers

Average spend:$1,530

Average spend:$1,268Average spend:$1,061

Demographic: 48% aged 55 and up (vs.
37% overall)

Demographic: 60% aged 44 or younger (vs.
47% overall)

Nothing for self: 85% do not plan to buy
any items for self during holiday shopping(vs. 26% overall)Open to gifting resale items: 47% plan togift a resale items (i.e., secondhand,refurbished, or used) this holiday season (vs.
29% overall)

How to win:
Offer a good assortment of toys—thefestive shopper plans to spend 34% morethan average on toys and hobbies

16%of holiday
shoppers

Chloe cares—and she’s willing to “put her
money where her mouth is“ by paying more
for socially responsible products.

Designated delivery options: 44% plan touse only one type of delivery option, notkeen on experimenting with newer last-mile
solutions (vs. 34% overall)

Eddie,
the efficient shopperof holiday
shoppers

Francesca is all about buying gifts forothers, keeping up with conventional
shopping routines.

Not paying extra for sustainability: 41%
unwilling to pay extra for socially conscious
goods (vs. 34% overall)David,
the deal-seeker

Sustainability beyond products: 71% preferto shop at retailers who adopt sustainable
practices (vs. 50% overall)Going local: 56% prefer shopping at local
retailers than national retail chains (vs. 43%
overall)
How to win:
Emphasize safety measures—46% consider
COVID-19 safety precautions when selecting a
retailer for holiday shopping (vs. 35% overall)David enjoys the search for the right gift at theright price. He’s up for browsing and sifting
through digital platforms, including social
media.
Demographic: 36% middle-income
households (31% overall)
Scouting for new retailers: 98% shoppers
plan to shop at new/different retailers
compared to last year (vs. 65% overall)Longer shopping duration: 75% plan tospend more than a month for holiday
shopping (vs. 65% overall)

Eddie isn’t in the mood to browse; shopping
is a task and he’ll seek out the easiest way
to get it done.
Demographic: 58% male shoppers (vs. 48%
overall)Fewer stores: 50% plan to shop just 1–4
stores for holiday purchases (vs. 44%
overall)Low on returns: 73% of shoppers did not
make any product returns during lastholiday season (vs. 67% overall)

Big-ticket items for household: 53% wait forholiday sales to buy big-ticket items forthemselves or their household (vs. 45% overall)Not shopping events: Only 20% plan toshop on a super six day, avoiding events
such as Black Friday and Cyber Monday (vs.
52% overall)

How to win:
Maximize brand messaging on deals – 91%
willing to try a new store or online retailer for‘better prices’ (vs. 62% overall)

How to win:
Have plenty in stock in December – 68%
expect to begin shopping in December orlater (vs. 17% overall)

Note: All dollar values are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |14

How do the different types of shoppers compare by average spend?
$1,652$1,53019%

Festive
shopper
10%

Conscious
shopper

Averagespend $1,387$1,268$1,061-9%

Dealseeker-24%

Efficientshopper

Note: All dollar values are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |15

Contactless formats gain
importance as consumers
seek safety and convenience

COVID-19–related anxiety is causing consumers to pull back from instore shopping, and nearly half don’t expect to return until a vaccine isdeveloped

51%
Are anxious about
shopping in-store
during the holiday
season due to COVID-19

69%

Prefer shopping at
a store closer totheir residence

65%

Prefer shopping
online to avoid
crowds48%

Prefer shopping at
a store locatedoutside a mall

49%
Will return topre–COVID-19
shopping
behavior whena vaccine isdeveloped

Questions: “To what extent do you agree or disagree with the following statements? I'm anxious about shopping in-store during the holiday season due to COVID-19”; “Please state how much you agree with eachof the following: I prefer shopping at a store closer to my residence”; "What are the reasons you anticipate shopping online instead of in a physical store? Avoid crowd”; “Please state how much you agree with eachof the following: I prefer shopping at a store located outside a mall”; and “Which of the following will help you to return to pre–COVID-19 shopping routines? Availability of vaccines for COVID-19.”
Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |17

The online vs. in-store gap has accelerated as consumers seek
convenient options to avoid crowds
Top reasons for shopping online
over physical stores(% predominantly online shoppers)

Share of spend: Online vs. in-store^
64%
55%

57%

59%

Online$892(Avg. spend)

Avoid crowds (65%)

51%

50%

Comfort of shoppingfrom home (64%)

46%

45%

Free shipping/delivery
options (60%)

38%

2015

2016

2017

36%

2018

36%

2019

Online channel (desktop, laptop, mobile, tablet, digital device)28%

In-store

2020

$390
(Avg. spend)

In-store

24-hour availability (58%)

Easy to compare prices (53%)

Question: “What percentage of your total holiday budget do you expect to spend ..?”
Notes: ^ Other retail channels (e.g., catalogue or direct mail promotion) not included in the chart (share of spend=3% in 2015; 5% in 2016; 7% in 2017; 7% in 2018; 5% in 2019; and 8% in 2020). Sample size(N)=4,012. All dollar amounts are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |18

COVID-19–influenced behaviors have driven demand for contactless
options such as curbside pickup
Preferred delivery service
73%

Standard delivery
Same-day or next-day delivery directly by the retailer

43%
35%

Buy online, pickup in-store

27%

Curbside pickup
Batching or combining ordersof shipping

20%

Same-day or next-day delivery through a delivery service
Buy online, pickup in-locker
Personal shopping assistantservices

Preferred product returns service

2019

15%
10%
8%

62%

Buy online, return instore/curbside

new

45%

34%
11%

Significant
jump YoY

Prefer “Buy online, returnin-store” to make productreturns most convenient

13%
New
8%
5%

Free return shipping

70%
Prefer free return
shipping to make productreturns most convenient

Question: “Which of the following delivery services are you likely to use during the upcoming holiday shopping season?”
Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |19

During the last six months of the pandemic, BOPIS evolved fromprimarily a safety consideration into a preference for convenience
April 9Replacing in-store
shoppers

During COVID-19’s early
peak, BOPIS was driven
more powerfully bysafety— replacing more
in-store shoppers.
But the number ofconsumers using BOPIS
as an alternative todelivery is rising.

Note: N=2500.
Source: Deloitte Global State of the Consumer Tracker.

BOPIS

Replacingdelivery

Why are consumers using BOPIS?
(United States)
September 17

Safer

48%

35%

13

Quickly check stock

30%

26%

4

Faster than shopping in-store 34%

32%

2Less stressful

33%

32%

1

Apps know my preference

10%

13%

3

Cheaper than delivery

26%

33%

7

Faster than delivery

23%

29%

6

Support local stores

25%

20%

5

Better for environment

14%

14%

-- 0

Copyright © 2020 Deloitte Development LLC. All rights reserved. |20

Store visits likely to be fewer than previous years as shoppers
streamline their shopping journey
Average number of physical stores customers expect to visit

6.9
5.9

6.2

7.0

6.3

Travel for gift shopping

Shopping at local store

9.6 miles

43%

Average distance travelledby shoppers to buy a gift

Prefer shopping at local
retailers than national
retail chains

Get store location on
mobileMultiple drop-off locations
for returns

58%

41%

Smartphone users get store
location for holiday
shopping from their mobiles

Prefer multiple drop-off
locations to make productreturns most convenient

5.7
5.2

2014

2015

2016

2017

2018

2019

2020

Question: How many individual retail stores do you expect to visit when purchasing holiday gifts over the next several months?
Notes: Sample size (N)=4,012.

Copyright © 2020 Deloitte Development LLC. All rights reserved. |21

Shoppers want free shipping and they’re only willing to pay minimal
amounts for faster options
On average, would pay an extra …
Importance of free vs. fast shippingFree
shipping
85%

$5.7
$3.9
Fast
shipping
15%

Free shipping

$1.9
$0.5
Fast shipping

Would pay nothing
extra for this

30%

36%

60%

88%

Questions: “Which of the following delivery services are you likely to use during the upcoming holiday shopping season?”; “How much extra might you be willing to pay above and beyond regular shipping costs toreceive a standard-sized gift package (price defined as US$50–100) within the shipping timeframes below?”
Notes: Sample size (N)=4,012. All dollar amounts are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |22

Consumers plan toshop fewer daysDespite expectations of earlier shopping, timing remains largely
unchanged from last year
39% plan to begin shopping on Thanksgiving or later

61% plan to begin shopping before Thanksgiving(Average spend=$1,149)(Average spend=$1,537)

38%

23%

22%

Nov
BeforeThanksgiving

Nov
On/afterThanksgiving

15%

2%

Before Oct. end
Averagespend$1,602

November$1,430$1,265

December$1,092January$370

Questions: “When are you likely to begin your holiday shopping this year?“; “Out of your plan to spend during holiday season, how much do you plan to spend during the following months?”
Notes: Sample size (N)=4,012. All dollar amounts are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |24

However, consumers expect to shop a week and a half less, whilevaluing online engagement and retail proximity for their shopping
journey
Share of shoppers by duration of shopping period
Average shopping
duration

7.1 weeks(2018)

7.4 weeks(2019)

5.9 weeks(2020)

Shop closer to home

Prefer online over physicalstore

Shopping radius ≤ 10 miles

Shopping at local store

69%

60%

58%

43%

Prefer shopping at a store
closer to their residence

Prefer online rather thanphysical store during theholiday season

Prefer to travel 10 miles orless to purchase a giftfrom a retailer

Prefer shopping at local
retailers than national
retail chains

Questions: “When are you likely to begin your holiday shopping this year?“; “By which one of these days or months do you expect to complete your holiday shopping this year?”
Notes: Sample size (N) for 2018=4,036. Sample size (N) for 2019=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |25

Nearly one-half of shoppers don’t plan to shop major events, but
those that do tend to spend more
Share of holiday shoppers by shopping event day
Prime Day

Singles' Day

Thanksgiving Day

Cyber Monday

None of the above$1,874$344

All holiday season

On Prime Day$1,483

$410

3%

8%

Black Friday

Small Business Saturday

Prime Day
shoppers

13%Black Friday
shoppers

24%

All holiday season

On Black Friday

14%

29%

47%

Nonshopping
event shoppers$1,291All holiday season

Question: “On which of the following shopping event days are you likely to shop this holiday season?”Notes: Sample size (N)=3,918. All dollar values are in US dollars.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |26

Cyber Monday has surpassed Black Friday in importance for all
generations
Shoppers who plan to maintain reliance on discount days
(Agree/very much agree/neutral %)Black Friday

Cyber Monday
76%

68%

65%
59%
54%

52%

48%

45%
40%

Gen Z

59%

45%

37%

Millennials

Gen X

Boomers

Seniors

Overall

Copyright © 2020 Deloitte Development LLC. All rights reserved. |27

Shoppers are still
spreading cheer

Gift cards and clothing remain top items for giving, while cash is still
the most wanted item to receive
Top items for gifting—holiday shopping (% of shoppers)
Buying as a gift

Would like to receive as a gift
Gift cards

48%

42%

Clothing

43%

Games, toys, dolls, etc.
(excl. computer/video games)

40%

37%
14%

Books

36%
29%

Cosmetics/fragrances/
health and beauty aids

28%

Restaurant(in-person meal or gift card)

37%
26%
35%

Money (cash or check)

27%

43%

Beverages(alcoholic/nonalcoholic)

27%
24%

Pet toys, décor, and accessories

24%

Jewelry

Buffer-bottom

Question: “Which of the following do you plan to buy this holiday season?” [Plan on buying as a gift; Would like to receive as gift].
Note: Sample size (N)=4,012.

30%
15%
27%

Buffer-top
Copyright © 2020 Deloitte Development LLC. All rights reserved. |29

Consumers plan to stay close to home and indulge on food andbeverageTop 10 items buy for self—holiday shopping (% of shoppers)
Beverages (alcoholic/nonalcoholic)

33%

Food (incl. meal preparation kits)

30%

Clothing

30%

Shoes

23%

Books

17%

Cosmetics/fragrances/health and beauty aids

16%

Pet food and treats (e.g., canned food, dry food, biscuits,
chewy treats)
Digital content (e.g., eBooks, music downloads, digitalmovies, streaming video/music subscriptions)Big-ticket items for self

45%
Wait for holiday sales tobuy big-ticket items foroneself or household

Non-gift spending

15%
13%

Do-it-yourself (DIY)/home improvement goods

13%

Home furnishings (e.g., furniture or glassware)13%

31% (+500 bps YoY)
Of holiday spend to be on
non-gift items during theupcoming holiday season

Question: “Which of the following do you plan to buy this holiday season?” [Plan on buying as a gift; Would like to receive as gift].
Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |30

As COVID-19 has motivated families to adopt pets,ˆ retailers have an
opportunity to pounce
50%
Share of holiday
shopper buying pet
foods and supplies

during holiday shopping

Pet food and supplies—shopping items
for the season

Most preferred retailer for pet foods andsupplies during the holiday season(% holiday shoppers)(% Pet foods and supplies shoppers)

21%

Pet food and treats

15%

$90
Average spend on
pet foods & supplies
during holiday shopping

Pet services

Buying to GIFT

Online/e-commerce retailers
(17%)
24%

Pet toys, décor, andaccessories

Pet stores
(49%)

12%

Mass merchants
(15%)

10%

Warehouse membership clubs
(4%)

8%

Buying for MY PET

Off-price stores(3%)ˆSource: “U.S. Pet Market Outlook 2020-2021: The COVID-19 Impact,” Packaged Facts, Market Research report, June 22, 2020.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |31

Consumer
preferences

A great deal still wins the day, with consumers ranking price, product,and convenience over safety precautions
Top 10 attributes for retailer selection
Getting a great deal

61%

Products and brands that are of high quality and can be trusted

49%

Variety of products/styles available

46%

Ease of checkout process38%

Well-organized and easy-to-navigate website/mobile app

36%

COVID-19 safety precautions

35%

Ease of product returns

32%

Ratings and reviews for products

31%

Availability of coupons and promotions

30%

Well-kept, clutter-free store (e.g., organized shelves/ clear aisles)

Price

Product

26%

Convenience

Question: “Which of the following attributes are the five most important while selecting a retailer during holiday shopping?” Please select the top 5 responses.
Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |33

Competitive pricing can sway shoppers to try out a new retailer
Influences in trying new store/online retailer
Better prices

65%of shoppers are open to trying
new retailers this season
vs. 79% in 201962%

Unique products

44%

Coupons or discounts

44%

Stock availability

43%

Greater selection

42%

Recommendation from friends/family40%

New or different types of gifts

39%

Better or cheaper shipping policies

38%

Positive reviews about the store or site

37%

Pleasant shopping experience

32%

COVID-19 safety precautions

32%

Questions: “What percentage of your total holiday shopping will be at the same retailer(s) as last year compared to trying out new retailer(s)? Please enter a whole percentage number”; “What would influence you
to try a new store or online retailer?”Notes: Sample size (N)=4,012. Total number of shoppers who plan to spend in new/different stores=2,573.
Copyright © 2020 Deloitte Development LLC. All rights reserved. | 34

Online retailers hold their spot as top format, while “browsing” formats
such as off-price, department, and specialty clothing stores decline in
popularity for holiday shopping
2019

Internet/online retailers (incl. auction sites)

62%

Mass merchants

50%

64%
53%

Traditional department stores

26%

32%

Supermarkets or grocery stores

26%

25%

Off-price stores

24%

29%

Warehouse membership clubs

23%

23%

Bookstores

23%

28%

Electronics/office supply/computer stores

22%

24%

Specialty beauty stores

21%

23%

Home improvement stores

21%

21%

Pet stores

17%

13%

Furniture or home furnishings stores

16%

17%

Dollar stores

16%

19%

Specialty arts/crafts retailer

16%

16%

Outlet stores/centers

16%

20%

Specialty clothing stores

16%

18%

Question: “At which of the following types of retailers will you likely shop for holiday gifts (retailer in-store and websites)?”
Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |35

From the onset of the pandemic, retailers that offered essentials
outperformed those that carried more status-related categories
YoY change in spend across retail subsectors
September 2019 to August 2020 vs. September 2018 to August 2019

Grocery delivery
13.1%
11.4%
11.3%

Discount
Club
Home
Drug and convenience
Beauty and personal care
Jewelry and watches
Electronics
Department-30.0%-12.8%-15.3%-17.0%-18.4%-19.9%-22.0%-24.8%-25.0%-20.0%-15.0%

-5.3%
-6.6%

-10.0%

-5.0%

6.3%

-0.7%
-1.2%

0.0%

5.0%

15.7%

6.4%

10.0%

15.0%

20.0%

% change
Notes: September 2019 to August 2020 vs. September 2018 to August 2019 subsectors reflect a representative set of retailers within each category; spending reflects both online and in-storetransactions.
Sources: Affinity Spend data; Deloitte Analysis.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |36

Younger shoppers lead the demand for socially responsible products
Extra amount that shoppers are willing to pay for socially compliant, sustainable products (% of shoppers)

82%
76%
63%

20%

65%

54%

23%

48%
17%

17%
12%

34%

28%
36%

18%

28%

GenZ

22%

25%

24%

45%

22%

Millennials

Gen X
No ExtraExtra 1%-5%

7%

19%

16%

23%

25%

Baby boomers
Extra 6%-10%

50%

Seniors

Extra 11%-20%

24%
34%
24%

Overall% of shoppers
who are willing to
pay extra

Question: “How much extra are you willing to pay for a product that has been certified as being socially compliant?” (“Others” not shown in the above chart.)
Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |37

Digital influenceWhile online players—e-commerce and search engines—take the leadon shopping research, retailers can build their advantage throughcross-channel integration
Top 10 research sources for holiday shopping#
Online retailers

64%
shoppers

63%

Web search engines

54%

Retail stores

47%

Retailer websites or mobile apps

46%

Family/friends/colleagues

use either retail stores ortheir websites/mobile
apps for shopping
research, matching with
online retailers

38%

Brand websites/mobile apps

32%

Third-party review/price comparison sites

21%

Most preferred research source by generation:

Social media sites

21%• Gen Z: Online retailers (63%)

Print media
Radio/TV
Physical sources

15%
9%
Digital sources• Millennials: Online retailers (61%)• Gen X: Online retailers (67%)• Boomers: Online retailers (62%)• Seniors: Retail stores (61%)

Question: “Which of the following will you use to do research before making your holiday purchases? Please select all that apply.”
Notes: Sample size (N)=4,012. # The question asked was a multiple-response question.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |39

Social media usage sees a slight uptick, mostly driven by younger
shoppers
Use of social media for holiday shopping

Use of social media for holiday shopping in 2020, bygeneration(% of respondents)

46%
28%

29%

27%

28%

44%

26%

24%

22%

23%

23%

19%

26%
22%

10%

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

Gen Z

Millennial

Gen X

Boomer9%

Senior

Question: “Do you plan to use social media sites (e.g., blogs, discussion groups, or social networks such as Facebook, Twitter, Instagram) to assist in your holiday shopping (e.g., research, purchase)?”Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |40

Shoppers look to each other for inspiration
Most preferred influencer-generated content for holiday shopping
User review comments on retailer
websites/mobile app

36%

Product reviews in blogs/online forums

26%

Live video of product use

14%

Short video clips (less than 15 seconds) on
social media

10%

Review/unboxing videos by social
influencers

10%Live question & answer session

5%

Celebrity picks/lists

3%

I don't follow influencers

72% shoppers who

46%

follow influencers sayless than a quarter of
their holiday shopping
is impacted by social
influencers

Question: “Which of the following influencer-generated content types inspire you the most while looking for gifts to buy? Select up to three.”Note: Sample size (N)=4,012.
Copyright © 2020 Deloitte Development LLC. All rights reserved. |41

About the survey
This survey was commissioned by Deloitte and conducted online by an independent research company between September 9-15, 2020.
It polled a national sample of 4,012 consumers and has a margin of error for the entire sample of plus or minus one to two percentage points.
About the Deloitte Consumer Industry Center
The Deloitte Consumer Industry Center (the Center) is the research division of Deloitte LLP’s Consumer industry practice. It provides a forum for industry
insights, thought leadership, and groundbreaking research to help companies in the automotive, consumer products, retail, transportation, and hospitality
and services sectors solve their most complex industry challenges.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, andtheir related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does notprovide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the“Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations ofpublic accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment,
legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as abasis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should
consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
Copyright © 2020 Deloitte Development LLC. All rights reserved.